In the seven days ended December 9, concerns about Covid’s new variant further affected the global market and bitcoin was also impacted. On Saturday (December 4), BTC fell about 22%, from US$ 53,600 to a little lower than US$ 42,000.
In Transfero’s analysis, many investors were influenced by the recent track record that occurred in March 2020, with the pandemic’s start, and there has been a big rush for liquidity. “In the long term, the market outlook remains in an uptrend. However, in the short term, the reversal has strengthened”, assessed the analyst team. According to them, prices are closing below the SMA50 (50-period Moving Average), and are very close to closing below the SMA200, further strengthening the downward movement.
In this period, the sell-off made the bitcoin price break through two major supports (US$ 51,200 and US$ 47,000), reaching the third support of US$ 42,000. “But quickly there was a recovery, and the price returned to the us$ 51,000 range, indicating resilience. In this short-term downward movement, the main support to be highlighted is in the range of us$ 42.7 thousand, which may become a good entry moment”, Transfero pointed out.
An interesting aspect of being highlighted is the Fear & Greed index that hit the 16-point mark this week, registering the lowest value in the last three months. “A sign that the market is on alert. When it is at low levels, such as now, investors understand that it is a good buying opportunity”, said the Transfero team.
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Finally, it is also worth noting that historically, during the year-end period, altcoins stand out – and the loss of BTC’s dominance in the market may be a good sign of this.